Could cancer affect your ability to meet your mortgage repayments?

By 2040, nearly two million Australians will be diagnosed with cancer1. With the rising number of cancer diagnoses, it’s more important than ever to consider what you would do – and what your family would do – should you be diagnosed with cancer while repaying your mortgage.

Understanding cancer in Australia

In 2017, it was estimated that there were 134,174 new cancer cases2.

Furthermore, Cancer Australia reports that from 2013, there has been a significant increase in the number of breast and prostate cancer diagnoses – so much so, that they account for 51.5%2 of all new cancer cases in 2017.

On a more positive note, cancer survival rates have also been increasing as a result of technological and medical advances, with more than half of people diagnosed with cancer (68%) living longer than five years after their diagnosis.

With an increasing number of cancer diagnoses and a growing rate of survival, it’s worth considering how you would meet your mortgage repayments if you were diagnosed with cancer.

Don’t just rely on your superannuation

While life cover in superannuation may be used by your family upon your death, studies have shown that the payout is only 30% of the recommended level for an average young family3.

More so, critical illness cover (also known as trauma cover) – an insurance designed to provide cover to help manage the significant impact of serious illnesses, such as cancer – is not typically covered through superannuation4.

What is your Plan B? Do you have cover?

If you haven’t got a clear plan, you’re not alone. Most people don’t even like to think about it, even though they should.

Consider Loan Protection Plan to help safeguard your ability to meet your mortgage repayments. Loan Protection Plan provides a Living Benefit which covers 11 serious medical conditions, including cancer*.

In addition, Loan Protection Plan also provides cover for:

  • Death and terminal illness (payment of up to $750,000)
  • Involuntary unemployment (financial support for up to 3 months’ benefits)

Best of all, it’s easy to get covered. Unlike other providers, we only ask for basic information and don’t require a medical, blood test or intrusive personal details. Cost will depend on the level of cover required, your age, gender and smoking status.

Ready to get covered? Talk to an ALI-authorised mortgage broker today about our mortgage protection insurance or alternatively if you’re ready, feel free to request a quote here now

 

1 http://www.smh.com.au/national/health/by-2040-nearly-2-million-australians-will-have-been-diagnosed-with-cancer-20180130-h0qydd.html
2 https://canceraustralia.gov.au/affected-cancer/what-cancer/cancer-australia-statistics
3 Rice Warner. Underinsurance in Australia (2015)
4 If your superannuation trauma cover commenced before 1 July 2014; You may be exempt from the changes and still entitled to trauma cover through your super fund. If you have rolled over your cover or your fund has been updated, you may lose the exemption. Check with your existing superannuation insurance provider if you're unsure.

Loan Protection Plan is jointly issued by Hannover Life Re of Australasia Ltd ABN 37 062 395 484 (Death, Terminal Illness, Living and Accidental Injury Benefits) and QBE Insurance (Australia) Limited ABN 78 003 191 035 AFSL 239545 (Involuntary Unemployment Benefit). It is distributed by Australian Life Insurance Distribution Pty Ltd ABN 31 103 157 811 AFSG 226403 (ALI). ALI receives commission for each policy sold. Any advice provided is of a general nature only and does not take into consideration your personal objectives, financial situation or needs. You should consider the Product Disclosure Statement when deciding if this product is appropriate for you.

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